Unit 3: Expanding Your Business

1
Unit 3 Expanding Your Business

• We will be looking at different forms of Business
  Ownership
• Private Sector
• Sole Trader, Partnership, Franchise,
  Co-operative, Private Limited Company (Ltd),
  Public Limited Company (Plc)
• Public Sector
• Public Sector Organisations (Police, Army, Post
  Office etc)

2
Sole Trader / Sole Proprietor

• Owned by just one person
• Can you think of any examples ?
• Many employ other people to work with them
• Also called Self-Employed
• There are about 3 million self-employed in the UK
• Tend to be small businesses
• Run shops, BBs, Hairdressers, Plumbers,
  Electricians, Building, Taxi-drivers

3
Unlimited Liability

• What does it mean ?
• No difference between private money and business
  funds
• If Business can not pay back a loan then the sole
  trader has to use his / her own money
• May have to sell personal possessions (car /
  house etc. to pay back loan
• This is UNLIMITED LIABILITY no limit to how
  much an individual is liable for

4
How do you get started ?

• Finance can be started with little money
  (savings or loans) known as Start-Up Capital
• Character What sort of person do you have to
  be?
• Hard working, enjoy responsibility, taker of
  risks.
• Ideas need to spot a gap in the market

5
Sole Traders are examples of ________ sector
businesses. They are also known as
sole___________. The main feature of a sole
trader is that one person both owns and _______
the business. The owner takes all of the ________
in running the business but receives all the
_________. The sole trader has unlimited
________, which means he or she is responsible
for all the businesss ________.

• Risks manages debts proprietors
• Private liability profits

6
Advantages / Disadvantages of being a Sole Trader

• In your groups you have 10 minutes to draw up a
  chart showing the benefits and drawbacks of being
  a sole trader.
• Marks to be awarded out of 10 for
• Content
• Presentation
• Teamwork

7
Benefits Drawbacks

• Im my own boss
• I didnt need much capital to get started
• I make all the decisions
• I get all the profits
• I can open / close and come and go as I please

• Unlimited liability I could lose my house
• Its hard to compete with the big boys
• Have to do everything ourselves
• Bank charges me more interest than the big
  businesses
• I can never get away I dream of a holiday

8
Homework

• Page 48 - Andy Garner
• Please try all questions and write in detail
• Plus draw
• a table showing the advantages and disadvantages
  of being a sole trader